On the 29th, the day of SK hynix's earnings release, the KOSPI and KOSDAQ indexes plunged together, triggering a level-1 circuit breaker on both markets. This is the first time a circuit breaker has been activated on the Korea Exchange for two consecutive days.
The Korea Exchange (KRX) triggered a level-1 circuit breaker on the stock market at 12:32 p.m. that day. As a result, all trading was halted for 20 minutes, after which normal trading resumed following 10 minutes of single-price trading.
The stock market circuit breaker is a market stabilization mechanism that is triggered when the KOSPI index falls 8% or more from the previous day and that condition persists for at least one minute. At the time of activation, the KOSPI was down 492.33 points (8.15%) from the previous trading day at 5532.33.
This is the 15th activation on the stock market on record and the ninth this year. In particular, back-to-back activation for two consecutive days is the first since the system was introduced.
On the KOSDAQ market as well, a level-1 circuit breaker was triggered at 12:19 p.m. that day. The KOSDAQ circuit breaker is activated when the index falls 8% or more from the previous day and that condition persists for at least one minute. At that time, the KOSDAQ index was down 56.85 points (8.05%) from the previous trading day at 649.00.
The KOSDAQ market's circuit breaker activation is the 14th on record and the fourth this year. Two consecutive days of activation is the third time, following October 2008 during the global financial crisis and August 2011 after the U.S. sovereign credit rating downgrade.